The New Jersey Nets agreed to trade Terrence Williams to the Houston Rockets in a three-way deal that will land them Los Angeles Lakers guard Sasha Vujacic and a pair of first-round draft picks, sources confirmed to ESPN.com on Tuesday.

The trade, which has been agreed upon in principle, will also send Nets veteran power forward Joe Smith to the Lakers, while New Jersey will receive Los Angeles' 2011 first-round pick and Houston's 2012 lottery-protected first-rounder, sources said.